This year the annual G20 Summit will be held in Hangzhou, China from September 4-5, 2016. Hangzhou is situated 200 km from Shanghai and 150 from Ningbo, so its location is at the heart of a key manufacturing area in central China. What we are hearing from our partners in China is that the Chinese authorities are concerned about high levels of air pollution impacting the success of the event.

Of primary concern are high-polluting factories, such as dyeing or printing factories, not meeting current emissions standards, with some already forced to close. In addition, we are being told that all factories within 200 km of Hangzhou will be forced to close 10 days prior to the G20 Summit and will be allowed to reopen once the G20 concludes. And if the air quality has not improved before then, the shutdown area could be expanded.

Clearly this could impact US importers and retailers, many of whom will be in their busiest shipping time of the year, as manufacturing and shipping of seasonal merchandise for holiday season would be in full swing. Additionally, with China closing for the National Day Holiday October 1, 2016 for one week, these closures could compress your available shipping window and impact your supply chain from Shanghai and Ningbo at a critical time this summer.

What can you do about it? Talk with your suppliers. Ask if they will be impacted. Review your own scheduling of POs, delivery dates and retail commitments to see how you may be impacted. And then we can work with you to create and implement a plan should one be needed for your business.